Since the massive price drop at the beginning of this week, and for the past three days, Bitcoin is trading a little above the $8000 support area.
This $8000 support line is getting its strength from the 78.6% Fibonacci level, along with the mid-term ascending trend-line and the historic price support area of $8000.
From the bullish perspective, the fact that the $8K support had held for the last three days might become a ground for a positive correction; however, the bulls anticipating that correction long enough to say that if it didn’t take place until now – it might not come at all, as BTC loses momentum.
Looking on the following charts, Bitcoin will soon have to make a critical decision facing the mid-term ascending trend-line, along with a short-term descending trend-line.
Total Market Cap: $221 billion
Bitcoin Market Cap: $146 billion
BTC Dominance Index: 66.2%
*Data by CoinGecko
Key Levels to Watch
– Support/Resistance: Same as the last three days, the first level of support is $8000. In case Bitcoin breaks down, then the next support lies around $7700 – $7800. If the last doesn’t hold, then $7400 is the next target, which is Bitcoin’s lowest prices since the parabolic move of June 2019.
From above, if a correction takes place, Bitcoin will face $8200 as the first possible target (descending trend-line), whereas the next resistance area is the $8300 – $8400 zone.
Further above is the $8500 area – which is the wedge’s descending trend-line, along with the 50-days moving average line (marked pink on the following daily chart).
– The RSI Indicator: There is no good news here for the bulls – the RSI looks very bearish, heading to the 30 level as of writing theses lines.
Stochastic RSI oscillator is pointing on oversold on the 1-day chart (for the past ten days already). This can lead to a possible positive correction in the case of a cross-over.
– Trading volume: The market makers are not here yet – the trading volume following the recent days’ action is minimal, very low compared to the monthly average.
BTC/USD BitStamp 4-Hour Chart
BTC/USD BitStamp 1-Day Chart
Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.